In this article, we will look at the 10 Best Small Cap Tech Stocks to Buy Right Now.
On August 29, Craig Johnson, Chief Market Technician at Piper Sandler, joined CNBC Television to discuss his bull case for small and mid-cap stocks, as he believes opportunities lie within these sectors. He also believes that these sectors have the potential to push markets to new highs by the end of the year.
Johnson noted that small and mid-caps have shown strong gains since the market lows. In contrast, the “Mag 7” stocks have been mostly slow and stagnant for the past 6 to 9 months, to the point that analysts have started calling these stocks the “Lag Seven.” The chief market technician of Piper Sandler noted that the Russell 2000 index, which is the key benchmark for small caps, is forming an inverted head and shoulders chart pattern. He highlights that this technical setup is a classic indicator of a potential big rally. Moreover, the index has recently broken above the neckline, signaling a possible move towards new all-time highs, which Johnsosn believes would be somewhere between 2450 and 2600.
In addition, the current market setup, which points towards the Federal Reserve cutting rates soon, would also further boost small and mid-cap stocks. He believes that this would be the major catalyst helping the sector outperform.
While Johnson is not bearish on large caps, he sees more growth potential in smaller stocks, as these are the best investment opportunity for those wanting the fastest gains. With that, let’s take a look at the 10 best small cap tech stocks to buy right now.
Our Methodology
To curate the list of 10 best small cap tech stocks to buy right now, we used the Finviz stock screener, CNN, and Insider Monkey’s Q2 2025 hedge funds database. Using the screener, we aggregated a list of small-cap stocks (Market Cap between $300 million and $2 billion) with analysts’ target price pointing to more than 35% upside in the next 12 months. Lastly, we cross-checked the upside potential from CNN and ranked the stocks in ascending order of the number of Hedge fund holders. Please note that the data was recorded on September 1, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Small Cap Tech Stocks To Buy Right Now
10. Innodata Inc. (NASDAQ:INOD)
Market Capitalization: $1.209 billion
Analyst Upside Potential: 76.41%
Number of Hedge Fund Holders: 16
Innodata Inc. (NASDAQ:INOD) is one of the Best Small Cap Tech Stocks To Buy Right Now. Wall Street is bullish on the stock despite the share price falling more than 30% since its Q2 2025 report. The share of Innodata Inc. (NASDAQ:INOD) is falling despite the company posting above-expectation results during the second quarter. The company posted a revenue of $58.39 million, up 79.38% and ahead of expectations by $2.04 million. The EPS of $0.20 also exceeded consensus by $0.09.
Several analysts have given bullish ratings on the stock. On August 1, Hamed Khorsand from BWS Financial maintained a Buy rating on Innodata Inc. (NASDAQ:INOD) with a price target of $74. The analyst noted that the market has been concerned about reduced spending from the company’s top customers, which form a substantial part of its revenue. However, despite these concerns, the company topped Wall Street estimates.
Khorsand also pointed out the rising AI investments, which help Innodata Inc. (NASDAQ:INOD) leverage its ties with big tech clients. He believes this could lead to more revenue growth. Moreover, later on August 2, Allen Klee from Maxim Group also reiterated a Buy rating on Innodata Inc. (NASDAQ:INOD) with a price target of $75. He noted that while there are concerns regarding the sustainability of the company’s big client revenues, management remains confident as they raised the FY2025 guidance during the second quarter.
Innodata Inc. (NASDAQ:INOD) is a global data engineering company that supports AI development by preparing and annotating training data and deploying AI models.
9. Aeva Technologies, Inc. (NASDAQ:AEVA)
Market Capitalization: $833.932 million
Analyst Upside Potential: 68.86%
Number of Hedge Fund Holders: 19
Aeva Technologies, Inc. (NASDAQ:AEVA) is one of the Best Small Cap Tech Stocks To Buy Right Now. On August 12, Aeva Technologies, Inc. (NASDAQ:AEVA) launched a new high-performance 4D LiDAR sensor designed for smart infrastructure and security, called the Atlas Orion. The sensor is built to meet tough outdoor standards and provides long-range detection and durability.
Management noted that it is a single-box design that uses Power over Ethernet and simplifies installation and cuts costs. The sensor can detect vehicles up to 500 meters and vulnerable road users like pedestrians up to 200 meters. It also covers a wide 120-degree field of view with fine resolution, allowing full intersection coverage with only two sensors.
After the press release on August 18, Joseph Moore from Morgan Stanley reiterated a Hold rating on Aeva Technologies, Inc. (NASDAQ:AEVA) with a price target of $19. The analyst acknowledged the progress of the company with its competitive LiDAR technology, especially its unique Frequency Modulated Continuous Wave platform. He noted that the company is nearing a commercial inflection point, supported by significant investments in R&D and integration of software and hardware components.
However, despite this, the analyst maintained a cautious rating due to the competitive pressures in the market, particularly from low-cost Chinese competitors. Moore noted that this competition has the potential to bring the prices down, thereby impacting the company’s pricing power and profitability.
Aeva Technologies, Inc. (NASDAQ:AEVA) designs and manufactures advanced LiDAR sensing systems and perception software. Its technology uses frequency-modulated continuous waves to measure both velocity and distance simultaneously.
8. PDF Solutions, Inc. (NASDAQ:PDFS)
Market Capitalization: $807.63 million
Analyst Upside Potential: 46.70%
Number of Hedge Fund Holders: 21
PDF Solutions, Inc. (NASDAQ:PDFS) is one of the Best Small Cap Tech Stocks To Buy Right Now. Wall Street is cautious on the stock as the share price has fallen more than 12.5% since the company announced its FQ2 2025 results on August 7.
PDF Solutions, Inc. (NASDAQ:PDFS) posted results that topped Wall Street estimates. The company posted a quarterly revenue of $51.73 million, up 24.16% year-over-year and ahead of estimates by $148,250. The EPS of $0.19 also stayed in line with the consensus. Management noted that it achieved record bookings for the Sapience Manufacturing Hub product family and the newly acquired secureWISE offering. Taking confidence from this record quarterly performance, management reaffirmed the guidance and is expecting an annual revenue growth rate between 21% and 23%.
However, despite this performance, the share price has fallen more than 12.5% and analysts are expressing caution. On August 8, D.A. Davidson analyst Clark Wright initiated a Hold rating on PDF Solutions, Inc. (NASDAQ:PDFS) with a price target of $24. More recently, on August 13, Northland lowered the firm’s price target on the stock to $29 from $36, while keeping an Overweight rating.
PDF Solutions, Inc. (NASDAQ:PDFS) provides comprehensive data solutions for the semiconductor industry. It helps companies collect, manage, and analyze manufacturing data to improve product yield, quality, and efficiency.
7. MNTN, Inc. (NYSE:MNTN)
Market Capitalization: $1.482 billion
Analyst Upside Potential: 61.69%
Number of Hedge Fund Holders: 22
MNTN, Inc. (NYSE:MNTN) is one of the Best Small Cap Tech Stocks To Buy Right Now. MNTN, Inc. (NYSE:MNTN) posted mixed results for its fiscal second quarter of 2025. As a result, the stock has fallen more than 36.5% since the announcement. The company posted quarterly revenue of $68.46 million, which was ahead of consensus by $3.92 million. However, the EPS of negative $0.65 fell short of the expectation by $0.59.
However, Wall Street remains bullish on the stock with several analysts reiterating a Buy rating lately. On August 6, Needham analyst Laura Martin maintained a Buy rating on MNTN, Inc. (NYSE:MNTN) and raised the price target from $25 to $35. The analyst highlighted the company’s strategic edge as a self-service advertising platform for major streaming services. He noted that the company is the largest demand-side platform focused on performance-CTV, and it dominates the fastest-growing segment of digital video advertising.
More recently, on August 11, Tigress Financial analyst Ivan Feinseth also raised the price target on MNTN, Inc. (NYSE:MNTN) from $28 to $36, while reiterating a Buy rating on the stock. The analyst noted that he believes the company is well-positioned to benefit from the fast-growing connected TV market. He highlighted that the adoption of CTV technology is rising quickly, and MNTN has a strong first-mover advantage, especially among small and medium-sized businesses.
MNTN, Inc. (NYSE:MNTN) provides a software platform called Performance TV that combines TV advertising with digital marketing precision.
6. Progress Software Corporation (NASDAQ:PRGS)
Market Capitalization: $1.995 billion
Analyst Upside Potential: 56.62%
Number of Hedge Fund Holders: 24
Progress Software Corporation (NASDAQ:PRGS) is one of the Best Small Cap Tech Stocks To Buy Right Now. Progress Software Corporation (NASDAQ:PRGS) has been making progress with new AI features and product launches. On August 10, the company announced new AI-powered features in its Sitefinity content management platform version 15.3.
Management noted that these updates help marketers create, manage, and optimize digital content faster and more effectively. Some notable improvements include AI-driven media search using natural language, advanced translation with Azure AI Translator, and AI-based content optimization for refining text.
More recently, on August 12, Progress Software Corporation (NASDAQ:PRGS) also announced the general availability of MarkLogic Server 12 at Ai4 2025 in Las Vegas. Management noted that the new release includes advanced semantic search and graph Retrieval-Augmented Generation features. The server empowers organizations to ground generative AI in their trusted data, resulting in more accurate, secure, and context-aware outputs.
Progress Software Corporation (NASDAQ:PRGS) provides AI-powered software to help businesses develop, deploy, and manage digital applications and experiences.
5. Photronics, Inc. (NASDAQ:PLAB)
Market Capitalization: $1.364 billion
Analyst Upside Potential: 39.61%
Number of Hedge Fund Holders: 25
Photronics, Inc. (NASDAQ:PLAB) is one of the Best Small Cap Tech Stocks To Buy Right Now. Photronics, Inc. (NASDAQ:PLAB) released its fiscal third quarter 2025 results on August 27. The company exceeded Wall Street estimates for both revenue and EPS. The revenue of $210.39 million topped the consensus by $6.09 million, while the EPS of $0.51 was $0.13 higher.
Management noted that they generated a strong cash flow of $50.1 million and invested $24.8 million in growth. Looking ahead, the next quarter’s revenue is expected to be between $201 million and $209 million, with non-GAAP earnings per share projected at $0.42 to $0.48.
Following the earnings release, on August 28, Thomas Diffely from D.A. Davidson reiterated a Buy rating on Photronics, Inc. (NASDAQ:PLAB) with a price target of $30. Moreover, Craig-Hallum also reiterated a Buy rating on the stock the same day with a price target of $36.
Photronics, Inc. (NASDAQ:PLAB) makes photomasks, which are precise plates used to transfer circuit patterns onto semiconductor chips and flat panel displays.
4. PROS Holdings, Inc. (NYSE:PRO)
Market Capitalization: $745.651 million
Analyst Upside Potential: 54.84%
Number of Hedge Fund Holders: 28
PROS Holdings, Inc. (NYSE:PRO) is one of the Best Small Cap Tech Stocks To Buy Right Now. Wall Street is bullish on the stock after it topped analyst consensus during its FQ2 2025. The company posted $88.72 million in revenue for the quarter, up 8.17% year-over-year and ahead of expectations by $1.05 million. The EPS was $0.13 and also topped expectations by $0.07. Management noted expanding its subscription gross margin to 79%, showing improved profitability. The company also raised its Q3 guidance and is now expecting revenue in the range of $90.5 million and $91.5 million.
Following the update, Jeff Van Rhee from Craig-Hallum maintained a Buy rating on PROS Holdings, Inc. (NYSE:PRO) with a price target of $24. More recently, on August 27, Northland Securities analyst Nehal Chokshi also reiterated a Buy rating on the stock with a price target of $36.
PROS Holdings, Inc. (NYSE:PRO) provides AI-powered software solutions that help businesses optimize pricing, sales, and revenue management.
3. Sprout Social, Inc. (NASDAQ:SPT)
Market Capitalization: $928.692 million
Analyst Upside Potential: 48.83%
Number of Hedge Fund Holders: 29
Sprout Social, Inc. (NASDAQ:SPT) is one of the Best Small Cap Tech Stocks To Buy Right Now. On August 26, William Blair analyst Arjun Bhatia maintained a Hold rating on Sprout Social, Inc. (NASDAQ:SPT) without disclosing any price target.
The analyst highlighted that he has noted some mixed signals about the company’s future. He noted that recently, the management canceled plans to sell more stock, showing that the company believes its stock is undervalued. Moreover, the company may also buy back shares, which Bhatia believes shows management’s confidence in the long-term prospects.
However, the growth has remained steady and is not speeding up. The company’s organic growth is in the low double digits, and the analyst noted that the investors want to see a stronger growth boost soon. He believes that key areas to watch are growth in higher-end markets and new opportunities in data exports and influencer marketing.
Sprout Social, Inc. (NASDAQ:SPT) offers a web-based platform that helps companies manage and measure their social media presence.
2. LiveRamp Holdings, Inc. (NYSE:RAMP)
Market Capitalization: $1.832 billion
Analyst Upside Potential: 43.27%
Number of Hedge Fund Holders: 31
LiveRamp Holdings, Inc. (NYSE:RAMP) is one of the Best Small Cap Tech Stocks To Buy Right Now. On August 6, LiveRamp Holdings, Inc. (NYSE:RAMP) released its FQ1 2026 results, beating expectations. The company posted a revenue of $194.82 million, up 10.72% year-over-year and ahead of consensus by $3.71 million. The EPS of $0.44 also came in ahead of the expectations by $0.02. However, regardless of the impressive results, the share price has fallen more than 16% since the announcement.
Wall Street has a mixed opinion about LiveRamp Holdings, Inc. (NYSE:RAMP). On August 7, Clark Wright from D.A. Davidson reiterated a Buy rating on the stock with a $45 price target. A few days later, on August 12, Elizabeth Porter from Morgan Stanley lowered the firm’s price target on the stock from $34 to $30, while reiterating a Hold rating.
Looking ahead, management expects fiscal second-quarter revenue to be around $197 million, while the full-year revenue is anticipated to be around $798 million and $818 million.
LiveRamp Holdings, Inc. (NYSE:RAMP) provides technology that helps companies connect and collaborate with data from multiple sources.
1. Jamf Holding Corp. (NASDAQ:JAMF)
Market Capitalization: $1.238 billion
Analyst Upside Potential: 39.48%
Number of Hedge Fund Holders: 39
Jamf Holding Corp. (NASDAQ:JAMF) is one of the Best Small Cap Tech Stocks To Buy Right Now. On August 26, Analyst Joshua Reilly of Needham maintained a Buy rating on Jamf Holding Corp. (NASDAQ:JAMF) with a $20 price target.
The analyst noted that he sees several positive factors after reviewing the company’s Q2 earnings and industry trends. He highlighted several new annual recurring revenue growth opportunities as a key driver for future success for the company. He also sees operational improvements within the company, which are expected to boost efficiency.
Reilly highlighted that the company is pushing strategic initiatives like launching a new partner portal and is focused more on enterprise sales. He expects these efforts will lead to improved profit margins.
Jamf Holding Corp. (NASDAQ:JAMF) topped Wall Street estimates in its fiscal second quarter of 2025. The company posted a revenue of $176.50 million, up 15.35% year-over-year and ahead of consensus by $7.53 million. The EPS of $0.18 also remained in line with the consensus.
Jamf Holding Corp. (NASDAQ:JAMF) provides software solutions that help organizations manage and secure Apple devices. Their cloud-based platform protects company data while keeping things simple and private for users.
While we acknowledge the potential of JAMF to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than JAMF and that has 100x upside potential, check out our report about this cheapest AI stock.
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